Overview
The regulation establishes a general ban on the placing on the market and making available of products on the European Union market (including imports from third countries). Furthermore, products manufactured under forced labour may not be exported from the European Union market. The regulation defines forced labour in line with the International Labour Organization Convention No. 29 (ILO Convention No. 29), according to which forced or compulsory labour is considered to be any type of work or service that is required of a person under threat of punishment and for which he or she has not voluntarily made himself available. In addition, forced labour imposed by state authorities and forced labour of children is also included. The EU estimates that 27.6 million people are affected by forced labour, including 3.3 million children [1].
The most important details and effects of the compulsory prescription are considered below.
Key Facts
The regulation stipulates that products that have been placed on the market in violation of its provisions must be withdrawn from the market and withdrawn from circulation. However, this does not cover the recall of products that have already reached end consumers in the EU. It is important to emphasise that authorities are obliged to take targeted steps in the event of violations of the regulation. These include not only the prohibition of further distribution or making available of the incriminated products on the EU market and their export ban, but also the request to the companies concerned to withdraw the products already sold or offered on the market and to delete online sales offers. The "withdrawal from circulation" of the products means their disposal in accordance with waste law. Non-compliant products must therefore be recycled or, if this is not feasible, rendered unusable and disposed of.
In addition, the regulation sets a clear framework for sanctions against economic operators who do not comply with the rules. Member States must ensure that they establish effective, proportionate and dissuasive sanctions to ensure that compliance with the Regulation is taken seriously throughout the EU's internal market. The aim is to send a clear signal to companies that the European Union does not tolerate forced labour in any form and is determined to take action against such practices.
The Regulation requires Member States to designate one or more competent authorities responsible for monitoring and enforcing the provisions.
In order to maximise the effectiveness of this initiative, an EU network against products produced by forced labour will also be launched. This network is intended to provide a platform for structured coordination and cooperation between national authorities and the European Commission. The aim of the improved exchange of information and close cooperation is to combine the efforts of the Member States and strengthen the enforcement of the new regulation at EU level.
In addition, the European Commission has announced the establishment of a specialised database. This aims to provide comprehensive and verifiable information on the risks of forced labour in specific geographical regions and for specific products. As a key tool, it is intended to provide valuable guidance to competent authorities and economic operators within the EU.
The database is intended to reflect the latest findings and developments and thus serve as a dynamic tool to help authorities and companies make informed decisions and thus contribute to the eradication of forced labour practices.
View
With the introduction of the regulation, the EU underlines its commitment to upholding human rights and fair working conditions worldwide and setting a new standard in global trade. However, practical implementation will bring some challenges.
Identifying and tracing supply chains to ensure that products have not been manufactured using forced labour requires extensive monitoring and cooperation between companies, authorities and international partners. In addition, the different legal and economic systems within EU Member States could make it difficult to apply and enforce this Regulation consistently. This complexity highlights the need for companies to strengthen their due diligence procedures and for authorities to develop effective monitoring and enforcement mechanisms.
To support national authorities in implementing this Regulation, the European Commission will issue guidance on forced labour due diligence and provide risk indicators.
Our support
Our goal is to provide comprehensive support to companies in the implementation and compliance with the EU Forced Labour Regulation, so that they can proactively respond to the requirements of the Regulation and fulfil their obligations in a way that ensures both legal certainty and the promotion of sustainable business practices.
We assist in conducting due diligence procedures to ensure compliance with the Regulation, as well as in contractually securing rights of recourse should a supplier manufacture products contrary to the Regulation.
We also provide legal representation in regulatory investigations and support in communicating and challenging decisions. We help prepare and submit the necessary reports and documentation for regulatory compliance and assist companies in resolving conflicts through negotiation or legal representation.
To ensure the sustainability of the measures against forced labour, we also assist in the implementation of monitoring and evaluation mechanisms.
Our goal is to assist companies not only in managing conflicts through negotiation or legal representation, but also in developing and implementing monitoring and evaluation mechanisms that contribute to the sustainability of measures against forced labor.
Footnotes
